In legislative elections held in Luxembourg on June 7, 2009, Prime Minister Jean-Claude Juncker’s Christian Social People’s Party secured 26 seats in the 60-seat Chamber of Deputies by winning 38% of the vote. The Luxembourg Socialist Workers’ Party took 13 seats with 21.6% of the vote, followed by the Democratic Party (9), the Greens (7), the Alternative Democratic Reform Party (4), and the Left party (1). The results of the elections ensured that Juncker would retain his position as head of government for another five years.

Prime Minister Jean-Claude Juncker of Luxembourg, in his role as chairman of the euro zone finance …

Francois Lenoir—Reuters/Landov

In October, however, Juncker expressed his interest in becoming president of the EU. This followed news that former British prime minister Tony Blair had decided to make a bid for the job. Juncker’s announcement elicited criticism from some observers—particularly in Britain—who argued that the leader of such a tiny country as Luxembourg would not wield enough influence to serve effectively as EU president. In response, Juncker memorably declared, “I am not a dwarf.” Belgian Prime Minister Herman Van Rompuy was ultimately selected for the post in November.

Luxembourg’s economy continued to flourish during the year, owing in large part to the banking and financial services sector, which accounted for roughly 28% of GDP. Diverse industries included chemicals and rubber as well as steel. Luxembourg’s GDP per capita was the third highest in the world, trailing only that of Qatar and Liechtenstein.